The following is a summary of the Ichor Holdings, Ltd. (ICHR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 sales reached $211 million, showcasing strong sequential growth.
Gross margin improved to nearly 30% with a sequential rise from Q2.
Q3 EPS was $0.12, reflecting strong earnings leverage as revenues increased.Operating income grew by over 40% from Q2, underpinned by a 160% increase compared to H1 2024.
Business Progress:
Increased investment in R&D by about 15% compared to 2023 to drive gross margin leverage.
Making significant progress on proprietary products which contribute to margin improvement.
Expect to deliver continued gross margin improvement in Q4 and full year, maintaining similar SG&A levels as 2023.
Opportunities:
Expected strong revenue growth from investments in NAND, gate-all-around, and advanced packaging technologies, particularly driven by demand for leading-edge AI devices.
Positive mix change expected for Ichor due to a greater level of etch and deposition intensity as the semiconductor industry moves into 2025.
Risks:
Lower estimates for lithography and China WFE impact growth expectations for 2025, although offset by other factors.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
